Bitcoin Price Prediction: After dipping below $6,000, still holding onto critical triple-bottom
- The BTC/USD dipped below $6,000, hitting the lowest since June.
- The long wait for the Bitcoin ETF and a sell-off in Ethereum are behind the fall.
- The technical picture remains bearish, but there is one silver lining.
Bitcoin is trading just above $6,000 after hitting a low of $5,900, the lowest since June 29th. Cryptocurrencies are extending their summer sell-off. Bitcoin has weathered the storm better than other digital coins, reaching a market dominance of over 50% for the first time in 2018.
Nevertheless, the recent wave of selling sent it lower. The market is still awaiting the approval of a Bitcoin Exchange Traded Fund (ETF). The recent rejections and delays have pushed the price lower. The next critical decisions are scheduled for September 21st and September 30th.
Apart from the long wait for an ETF approval, Bitcoin has been carried away by a sell-off in the second cryptocurrency by market capitalization, Ethereum. Ethereum has been used as a base currency for the vast majority of Initial Coin Offerings (ICOs), and the recent slump in prices has triggered an exodus out of new Altcoins and consequently put pressure on Ethereum. While Ethereum and Bitcoin do not trade in tandem, the drop of the ETH/USD under $300 was not unnoticed by the BTC/USD.
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BTC/USD Technical Analysis
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The BTC/USD is suffering from negative Momentum and the Relative Strength Index on the daily chart points to further falls: it is below 50 and above the oversold territory, above 30. The digital coin is also trading below the 50-day and 200-day Simple Moving Averages.
The critical line to watch is $5,777 which provided support to Bitcoin on June 25th. The low point on June 29th was only marginally higher. Looking back to February, we see a low price of $5,896. This could also provide some support before $5,777, but if we look at the broader picture, we can see it as completing a triple bottom.
Below $5,777 we are back to levels that were last seen in 2017. The round number of $5,000 is noteworthy, followed by $4,500.
On the topside, we find $6,626 which capped the price in recent days. Next up is $6,800 which held Bitcoin down in early July and $7,200 is next up after providing support when the BTC/USD was trading on high ground in late July.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
